In Chapter 4, we discussed the federal government's agricultural programs. In arguing that the costs of these programs exceed their benefits, economist Vincent H. Smith stated, "The 10% to 15% of farm families that receive more than 85% of all farm subsidies-amounting to millions of dollars a year in a few cases-have annual household incomes many times as large as those of the average U.S. taxpayer." According to the U.S. Government Accountability Office, these programs cost taxpayers about $20 billion annually.
a. What is the stated purpose of the federal government's agricultural programs?
b. Are the points Smith raises consistent with the purpose of the programs? If not, what explains how the programs currently work?